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Priced with a spread of 88 basis points over 10-year U.S. Treasuries, this marks the tightest spread ever achieved in Ooredoo’s history as well as one of the lowest in the emerging markets and the lowest for a global telecommunications company on a 10-year bond since 2020.
The bond issuance was 3.6 times oversubscribed, reflecting investor confidence in Ooredoo’s strategy and financial strength.
Doha: Ooredoo Q.P.S.C. (“Ooredoo”), today announced the successful completion of its USD 500 million issuance of senior unsecured 144A/RegS notes (“The Notes”). The Notes were issued by its wholly owned subsidiary, Ooredoo International Finance Limited, under the existing USD 5 billion Global Medium Term Notes programme on the Irish Stock Exchange and are unconditionally and irrevocably guaranteed by Ooredoo. The Notes are rated A2 by Moody’s and A by S&P.
The Notes were priced at an annual coupon rate of 4.625% and mature in October 2034. The transaction achieved a spread of 88 basis points over 10-year U.S. Treasuries, marking the tightest spread ever achieved in Ooredoo’s history, as well as one of the lowest for an emerging market corporate issuer and the lowest for a global telecommunications company on a 10-year bond since 2020.
The issuance was oversubscribed by 3.6 times attracting a diverse group of investors including asset managers, fund managers, insurance and pensions companies, banks and sovereign wealth funds, from the United States, the United Kingdom, Europe, Asia and the MENA region. Net proceeds from the sale of the Notes will be used for Ooredoo’s general corporate purposes, including refinancing of its existing indebtedness.
Aziz Aluthman Fakhroo, Group CEO, Ooredoo, said: “The strong interest in this bond issuance underscores investors' confidence in Ooredoo’s strategy as well as its operational and financial performance. Achieving the narrowest spread over 10-year U.S. Treasuries in the company’s history also reflects the market view that Ooredoo is seen as a reliable, secure and future-proofed investment option. The issuance comes at an important time for our company, as we continue our journey to becoming the MENA region’s leading digital infrastructure provider.”
The issuance was arranged and offered through a syndicate of joint global coordinators and joint bookrunners comprised of Citigroup Global Markets Limited, J.P. Morgan Securities plc, HSBC Bank plc and joint bookrunners comprising of Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd. and QNB Capital LLC.
Ooredoo Group last month announced a landmark USD 550 million financing deal to accelerate the growth of its data centre business and unlock new opportunities in AI and Cloud computing. This follows the establishment of the MENA Digital Hub earlier this year, Ooredoo’s new, carrier-neutral data centre company, which is set to transform the region’s digital infrastructure.
About Ooredoo
Ooredoo is an international communications company operating across the Middle East, North Africa, and Southeast Asia. Serving consumers and businesses in 9 countries, Ooredoo delivers leading data experience through a broad range of content and services via its advanced, data-centric mobile and fixed networks.
Ooredoo generated revenues of QAR 23 billion as of 31 December 2023. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange.